Solar incentives by state (2026)
Net metering, state tax credits, property and sales tax exemptions and SREC programs for every state, on top of the 30% federal credit.
| State | Net metering | State credit | Property tax | Sales tax | SREC |
|---|---|---|---|---|---|
| Alabama | Limited or utility-dependent | — | — | — | — |
| Alaska | Net billing / reduced export credit | — | — | No sales tax | — |
| Arizona | Net billing / reduced export credit | 25% state tax credit, up to $1,000 | ✓ | ✓ | — |
| Arkansas | Net billing / reduced export credit | — | — | — | — |
| California | Net billing / reduced export credit | — | ✓ | — | — |
| Colorado | Retail-rate net metering | — | ✓ | ✓ | — |
| Connecticut | Net billing / reduced export credit | — | ✓ | ✓ | — |
| Delaware | Retail-rate net metering | — | — | No sales tax | ✓ |
| District of Columbia | Retail-rate net metering | — | ✓ | ✓ | ✓ |
| Florida | Retail-rate net metering | — | ✓ | ✓ | — |
| Georgia | Net billing / reduced export credit | — | — | — | — |
| Hawaii | Net billing / reduced export credit | 35% state tax credit, up to $5,000 | — | — | — |
| Idaho | Net billing / reduced export credit | — | ✓ | — | — |
| Illinois | Net billing / reduced export credit | — | ✓ | — | ✓ |
| Indiana | Net billing / reduced export credit | — | ✓ | — | — |
| Iowa | Retail-rate net metering | — | ✓ | ✓ | — |
| Kansas | Retail-rate net metering | — | ✓ | — | — |
| Kentucky | Net billing / reduced export credit | — | — | — | — |
| Louisiana | Net billing / reduced export credit | — | ✓ | — | — |
| Maine | Retail-rate net metering | — | — | — | — |
| Maryland | Retail-rate net metering | $1,000 state Residential Clean Energy grant | ✓ | ✓ | ✓ |
| Massachusetts | Retail-rate net metering | 15% state tax credit, up to $1,000 | ✓ | ✓ | ✓ |
| Michigan | Net billing / reduced export credit | — | ✓ | — | — |
| Minnesota | Retail-rate net metering | — | ✓ | ✓ | — |
| Mississippi | Net billing / reduced export credit | — | — | — | — |
| Missouri | Retail-rate net metering | — | ✓ | — | — |
| Montana | Retail-rate net metering | — | ✓ | No sales tax | — |
| Nebraska | Retail-rate net metering | — | — | — | — |
| Nevada | Net billing / reduced export credit | — | ✓ | — | — |
| New Hampshire | Retail-rate net metering | — | ✓ | No sales tax | — |
| New Jersey | Retail-rate net metering | — | ✓ | ✓ | ✓ |
| New Mexico | Retail-rate net metering | 10% state tax credit, up to $6,000 | ✓ | ✓ | — |
| New York | Retail-rate net metering | 25% state tax credit, up to $5,000 | ✓ | ✓ | — |
| North Carolina | Net billing / reduced export credit | — | ✓ | — | — |
| North Dakota | Net billing / reduced export credit | — | ✓ | — | — |
| Ohio | Retail-rate net metering | — | ✓ | ✓ | ✓ |
| Oklahoma | Net billing / reduced export credit | — | — | — | — |
| Oregon | Retail-rate net metering | — | ✓ | No sales tax | — |
| Pennsylvania | Retail-rate net metering | — | — | — | ✓ |
| Rhode Island | Retail-rate net metering | — | ✓ | ✓ | — |
| South Carolina | Net billing / reduced export credit | 25% state tax credit (up to $3,500 per year) | — | — | — |
| South Dakota | Limited or utility-dependent | — | ✓ | — | — |
| Tennessee | Limited or utility-dependent | — | — | — | — |
| Texas | Limited or utility-dependent | — | ✓ | — | — |
| Utah | Net billing / reduced export credit | — | — | — | — |
| Vermont | Retail-rate net metering | — | ✓ | ✓ | — |
| Virginia | Retail-rate net metering | — | ✓ | — | — |
| Washington | Retail-rate net metering | — | — | — | — |
| West Virginia | Retail-rate net metering | — | — | — | — |
| Wisconsin | Retail-rate net metering | — | ✓ | ✓ | — |
| Wyoming | Retail-rate net metering | — | — | — | — |
Simplified overview — programs change often and many incentives are set by utilities or cities. Confirm details with your utility, your state energy office and your installer.
How incentives stack
Start with the 30% federal tax credit, then add any state credit, tax exemptions and SREC income. Good net metering often matters more than any rebate, because it decides what your exported power is worth for 25 years.
Frequently asked questions
Do state incentives stack with the federal tax credit?
Usually, yes. State tax credits, property and sales tax exemptions and SREC payments generally come on top of the federal credit, though a state rebate can reduce the cost basis used for the federal credit.
What is an SREC?
A solar renewable energy certificate represents the clean energy your system produces. In states with SREC or performance-payment programs you can sell them for extra income.
Which states have the best net metering?
States with retail-rate net metering credit exported power at roughly the price you pay for electricity, which shortens payback. Rules vary by utility, so always check yours.
Estimates only. Actual results depend on your home, installer and local rules.